Senetas readies for Quantum Leap after strong FY2024

Encryption specialist Senetas sees record encryptor order whilst it tackles the cybersecurity challenge of quantum computing.

Quantum computers will usher in a new dawn of computing, but also present serious cybersecurity challenges. Pic: Getty Images

• Senetas has posted strong customer sales of its encryptors, up over 100%

• Quantum computing to remain a driver for advanced encryption technology in years ahead

• Subsidiary Votiro continues to grow in lucrative anti-ransomware cybersecurity field

Special Report: Senetas has delivered strong growth in FY2024 whilst it continues its strategic positioning as an answer to the upcoming cybersecurity issues of quantum computing.

In the fiscal year ending June 30, 2024, Senetas (ASX:SEN) achieved a notable surge in customer sales through its partner Thales, growing its revenue by over 100%. This includes Senetas’ largest ever single order from a customer in the Middle East, worth $2m. Senetas’ consolidated group revenue increased by 6.5% to $31.2 million, with a gross profit rise of 12.6%.

Rising to quantum challenge

Encryption technology has been a fundamental part of modern cybersecurity for decades.

But Senetas’ strong growth in sales signals a growing international appetite for more advanced solutions that can address potential quantum computing threats.

Quantum computers, despite being in a nascent stage, are expected to be able (through immensely amplified computing power) to break conventional encryption standards and key public infrastructure that currently safeguards sensitive information worldwide.

Senetas’ products are designed to be crypto-agile and quantum-ready, ensuring long-term data security without compromising network performance.

Quantum Leap

Votiro (a Senetas subsidiary) has also made significant strides, particularly in the Asia Pacific region, which remains its largest market. Votiro's annual recurring revenue was up by 49% from the previous year, reaching US$10.4 million.

The introduction of its new Data Detection and Response capability, a unified content security platform, is set to further penetrate the North American market where demand for innovative solutions to both cybersecurity and data privacy compliance challenges is escalating.

Looking ahead, Senetas CEO Andrew Wilson anticipates maintaining robust sales performance into FY2025.

“The pipeline for new business, especially from the Middle East and potential new markets like Brazil, is expected to drive further growth,” he said.

“Although, it has to be mentioned, due to the fact that our customers are large enterprises and nation-states, it is difficult to predict which financial year any one deal will be completed.

“What is particularly pleasing is that our sales pipeline is more robust than ever, and from a Votiro perspective, the introduction of DDR products is set to enhance Votiro’s market presence and contribute significantly to future revenue streams.”

As investment by both Australia and multiple other nations into quantum computing increases rapidly, Senetas remains committed to staying ahead of cybersecurity threats.

“Quantum computers will be a revolutionary technology for so many industries (like) healthcare research, logistics, scientific modelling of complex problems like climate change, military planning etc.,” Wilson said.

“Far less public attention is paid to the risks of quantum technology, however quantum-ready encryption that mitigates those risks is something that is capturing the attention of nation states and we are perfectly positioned to take advantage of that in the years ahead.”

With decades of experience and timely investments into cutting-edge cybersecurity solutions, Senetas has built an international reputation for quality that positions the company well to capitalise on upcoming opportunities and navigate the challenges of a rapidly evolving technological landscape.

This article was developed in collaboration with Senetas, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.